All Forum Posts by: Pedro Jose Villaroman

@Dakota Coburn i feel you man! I myself has the same experience with a joint venture to people that has no experience and end up take the loss rather than continue to bleed cash for hard loan interests.

Good luck to you!

Thanks every one for your comments and thoughts appreciate all of it. We heard back from the lender and giving us extension but will cost us much more interest like what everyone of you said will happen. If im going to takeover the property to my partner ill need 50 to 70k cash to close the new loan that is for 20% down payment and closing cost for the 257k total dues. I guess ill need to move on with this property and stop the bleeding. Lesson learned for sure but it will not stop me to continue doing REI.

Again thank you all.

@Brian Pulaski we had a lot of showings and a lot of people see the house. They love what they see but not the cost at that time. Now listed for 285 we had offers for 275k and asking for some help for closing too that we cant afford to do.

@Helen C we have applications for rental for 2350 a month but the problem if the lender is asking us to pay the loan.. im also thinking if i can just takeover the loan to my partner and mortgage it as investment property for rental. Since im losing 45k in this deal should i just purchase the property for myself?

@Matt M. So I talked to my JV partner and it seems we only have until end of this month to sell the house so we are really in a very bad situation in finding a buyer.. My partner is the one whose handling everything with regards to selling the property and its under his LLC name. We are also looking for wholesaler just to get the 285k since we are already in a loss for sure.

@Mike Dymski The $40k will be 25k additional to payoff the loan and about 15k for the closing cost.

@Kris L. What went wrong here is I didn't make proper due diligence on the property before we go with it. and probably the listing part of it we should not put it too high like what matt said.

Our purchase price is 170k for the property and 84k for the renovations. 12% interest plus 5k for the points and closing. I gave 40k for the downpayment and 2500 for the appliances and 2500 for some interest payments. We plan on refinancing it but my JV partner says its not an option because the appraisal for the property is only 307k and 40k closing cost. We are going to meet today and discuss other option.

Hello BP im a newbie in RE and i entered in a JV contract with another newbie to purchase a historic SFR in Fairmont Heights MD using a hard money lender and closed on October 2018. Our JV agreement is im paying for the down payment and closing cost its about 45k total and he will do the overall work for the project.

Fast forward he finished the renovation and listed the property on May and up until now we do not get any offers and our contract with the hard money will due end of December. You can see the detail of the property price history on zillow from 399k last May down to 285k this month. Im in panic mode right now for im about to loose a lot of cash for this project.. any help or advice for this will greatly appreciated.

address is 612 60th place fairmont heights MD.

Thanks!

PJ

Congrats on your first flip and hope for the best for future investment journey!:) 

Craig,

The lender is a private money company. Yes, it answered my question. Thank you!:) 

@ craig wilcox thank for your comment on this. So even when the lender provide a proof of funds it will not matter to them if the contract was assigned to a cash buyer that wont use them for the purchase? Im asking this because the realtor is worried about it..

Hello BP community. I just want to ask about your insights for this matter. can you assign a contract to a cash buyer if the contract offer was subject to financing approval? Does it have to be in cash offer in the first place? I would appreciate all your comments on this.

Thanks!